Elliott wave analysis: Can we see 1k in Ethereum?

Ethereum dropped into our projected bottom target zone as expected and bounced sharply, which is the first sign for a completed correction. On the daily logarithmic scale chart below you can see that Ethereum bounced exactly from previous wave IV support after a three-wave setback, which is actually an ideal reversal point. Besides that, we also see a weekly reversal candlestick, which also suggests that bottom can be in place, at least temporary one.

So, as we already know cryptocurrencies are more or less in positive correlation and just like BTCUSD, ETH/USD may also be at an early stage of a new bullish cycle for wave (V). But as always, we must focus on minimum expectations which is a three wave rise away from 560, that may continue up to 1000 psychological level.

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/